President Joe Biden signed the Social Security Fairness Act, enhancing benefits for nearly 3 million public workers, including teachers, police officers, and firefighters. The bipartisan legislation repeals the Windfall Elimination Provision and the Government Pension Offset, which previously reduced Social Security benefits for those receiving public pensions.
The law aims to rectify a decades-old disparity, allowing affected retirees to receive full benefits.
Biden stated, "The bill I’m signing today is about a simple proposition: Americans who have worked hard all their life to earn an honest living should be able to retire with economic security and dignity."
The Congressional Budget Office estimates that eliminating these provisions will boost payments by an average of $360 to $1,190 for affected beneficiaries by December 2025. However, the changes will add strain to the Social Security Trust Funds, which face a looming insolvency crisis projected for 2035.
The bill passed with bipartisan support, with the Senate voting 76 to 20 and the House 327 to 75. Despite some opposition, the act is seen as a significant victory for public service workers. The National Education Association President Becky Pringle called it "a historic victory that will improve the lives of educators, first responders, postal workers, and others."
The Social Security Administration will manage the increased payments, though the process for back-dated payments remains unclear. The agency faces challenges due to a hiring freeze and low staffing levels.
The future management of Social Security will likely be discussed after President-elect Donald Trump takes office later this month.